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As the price of the second-largest cryptocurrency approaches $4,000, Ethereum is clearly increasing its chances of surging to a new yearly high. Previously, some analysts had said that ETH could hit $4,500 before the ETF trading begins.
Ethereum has also continued its rise above the $3,800 level and is currently trading at around $3,906. This bullish move is rather supported by heavy trading volumes, indicating strong buying interest. Currently, this level is getting strong support from the 50-day EMA near $3,225 and the 100-day EMA near $3,170, supporting ETH.
Currently, Ethereum’s RSI is at 72, indicating that ETH is overbought. This could be a sign of a pullback, but the overall sentiment of the market remains intact. The recent price action has seen a clear breakout from consolidation, with more targets targeting higher resistance levels for ETH.
However, momentum needs to be sustained to continue the journey towards $4,500 and surpass the psychological $4,000 price level. If broken out, the next key resistance seen in the $4,200 range could empower ETH towards $4,500. The levels to watch now are $3,800 and $3,500 on the downside, and holding these levels should keep the bullish trend in check.
Bitcoin's journey to $70,000
Bitcoin has failed to surpass or approach the key price level of $70,000 and is currently hovering around $69,000. Unfortunately, this is a sign of declining momentum and could signal a continued bear market ahead.
This means that the digital asset has failed to sustain above the $70,000 mark, which would signal continued massive buying pressure.Looking at the recent price action, Bitcoin has once again failed to sustain above the $70,000 mark, where its biggest resistance lies.
On the daily chart, Bitcoin is showing visible signs of consolidation as it trades just below the $69,000 mark. Additionally, the fight to hold gains above the psychological level continues to gain momentum, with the 50-day moving average continuing to consolidate at that level.
The failure to break out of the $70,000 resistance and stable price movement could also be a sign of a potential bearish trend. If Bitcoin loses the battle to hold above the immediate support of $68,000, it could test the lower support levels near the $65,000 and $62,000 moving averages. Increased selling pressure below these moving averages is likely to result in bigger losses towards the $60,000 levels.
Solana reaches support
Solana is approaching a strong support level at the 26 EMA. This is not the first time that SOL price is testing this resistance level, in the past SOL has reached around $160 and successfully rallied.
Solana is testing a strong support level – the 26-day EMA. This is not the first time that SOL price has touched this resistance level. This has happened in the past, when SOL saw its price rise around $160 with success. Solana is currently trading around $164, which is close to the major support zone extended by the 26-day EMA.
This has worked strongly in the past, especially near the $160 level, from where SOL regained strength and rose. One very important technical indicator that traders will want to watch closely is the 26 EMA, as this typically acts as a cushion in bull markets and resistance in downtrends.
Solana has been quite volatile in terms of price but has maintained an upward trend in the past few weeks of trading. Moreover, the price has retreated around the $190 level and is testing the 26 EMA support. Not far away is the 50-day EMA at $153, which will be the next line of defense if the 26 EMA fails.
About the Author
Armand Sirignan
